Not All Dividend ETFs Are Created Equal
The common dividend label belies what is a diverse array of equity-income strategies.
Exchange-traded products, or ETPs, that are labeled with the "dividend-screened/weighted" attribute within our strategic-beta taxonomy represent the largest contingent of this universe as measured by assets under management. As of the end of February, these ETPs collectively held $134 billion of investors' assets. This represents 31% of the $434 billion in the broader strategic-beta grouping.
This category has been growing at a blistering pace in recent years. Over the trailing decade, dividend-oriented ETPs have attracted nearly $101 billion in new assets (see Exhibit 1 below).
Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.